So Johnno.
If you have money in a bank account and earn $100 in interest for the year and that's all you earn.
Should you pay 30% tax on that!
A person receiving $100 fully franked dividends for the year is paid $70 upfront and $30 is pay as you go tax (the franked bit) When filling in the tax return the income for the year is a total of $100.
Because you are in the tax free threshold you get back your $30 at the moment.
If it is bank interest earned you get to keep the whole $100 for the same reason.
So really effects anyone who's FF dividend income is below the tax free threshold of $20,000
The not so well off people and not the rich.
